Gas prices in the U.S. will slowly continue to rise. No one should be surprised by this. There will be a spike in the price going up over $6/gal. to around $6.50 in some parts of the country sometime in late 2014 to Feb. of 2015. The spike will be an anomoly and will last no more than 2 weeks – but most likely 11 days. The government will step in to bring the price back down to it’s pre-spike price. The price will eventually reach about $4.50/gal on average throughout the U.S. through the 2010 decade. By 2020, we will see $5.00/gal as a regular price in some areas.
The lowest the spike could be is $5.50/gal., with the pre- and post- price being $4.00/gallon. The differing numbers depends on the behavior and choices of Americans up to that time.
The price increase will be 95% directly driven by oil prices coming out of OPEC. How much of a price increase will be 85% dependent on American consumers.
Do you think that gas prices will still be high given that we now have lots of wells producing natural gas and oil?